Around $53 billion or 42% of $127.2 billion mobilised through foreign currency non-resident (bank) {FCNR(B)} deposits under the Reserve Bank of India’s (RBI) special forex swap facility was facilitated through international banking units (IBUs) at GIFT City’s International Financial Services Centre, underscoring the growing role of the financial hub in channelising overseas funds.
As of August 31, IBUs sanctioned loans of $54.02 billion under the FCNR(B) swap scheme, of which around $52.82 billion has actually been disbursed, sources said.
The RBI had introduced the facility on June 5 to encourage banks to raise fresh FCNR(B) deposits with a maturity of three to five years, helping bolster the country’s foreign exchange position amid pressure on the rupee and balance of payments due to the West Asia conflict.
The finance ministry had earlier specifically directed public sector banks to make greater use of GIFT City for the scheme.
Separately, external commercial borrowings (ECBs) disbursed by IBUs stood at $11.62 billion for the April-August period.
Indian banks also raised $11.12 billion through bond issuances on IFSC exchanges during the same period.
India is positioning GIFT City as India’s answer to global financial centres by allowing international financial activity within India’s time zone and geography.